A form required by titling agencies denoting that the home has been placed permanently on the homeowner’s land and is to be classified as real estate for taxation and lending requirements. Also known in some states as “Title Cancellation”.
A document required by manufactured home lenders to determine the appraised value of the home being financed. A licensed appraiser determines the value based upon size, quality, purchase price, and comparison to comparable prices (comps) of other manufactured homes sold in the surrounding neighborhood within the last few months. An appraisal report can be obtained for a manufactured home already on site, or, in the event of a factory ordered home, the home and land may be appraised separately and combined when the home is officially on site.
An individual who buys and finances a manufactured home for someone else. The lender must be aware of and approve a “buy for” at the time of application. Most manufactured home lenders will not approve these types of applications.
A document issued by a local or state building agency that certifies, following inspection, that the home has been installed in accordance with all applicable requirements and may be safely occupied. This format may differ from state to state depending on whether or not the home is affixed to property. The lender will require a copy of this occupation certification prior to funding a loan.
Manufactured homes classified as personal property. In most states, they remain personal property until they are legally attached to real property – then they are considered real estate and will only then be eligible for mortgage-type financing.
A loan that does not disburse funds until the home has been installed, all site work completed, and the home has been inspected and certified for occupancy.
Most lenders require a letter from a structural engineer certifying the foundation is in compliance with the HUD Publication, Permanent Guide For Manufactured Homes, dated 1996.
Federal Housing Administration within the U.S.Department of Housing and Urban Development (HUD).
The number assigned by FHA to a particular borrower and property.
Credit scores that are composites that indicate how likely a person will pay on a manufactured home loan as agreed, based on prior credit history, amounts of debt, length of credit history, and types of credit in use. The manufactured home lender reviews the application for financing from a credit report and other data, including income levels in addition to existing debt and the additional debt incurred with the manufactured home loan. Fair, Isaac, and Company (FICO) developed the mathematical formula to establish credit scores. Scores range from 300 (poor) to 850 (excellent), and the rule of thumb is the higher the score, the lower the risk to the lender.
A method of financing a manufactured home, land, and site improvements with one loan.
A letter from a bank or other lender that agrees to loan a certain sum to buy a specific manufactured home on certain terms.
A new manufactured home is not static-h3’d until it is first sold to a retail customer. The manufacturer prepares a document (MSO) transferring ownership from the manufacturer to the retailer/dealer. This statement contains the physical static-p of the home, the assigned serial number(s), and HUD numbers attesting that the manufactured home has been built to the federal requirements of the U.S. Department of Housing and Urban Development. The lender will use the information from the document to create titling or deed documents to be held as security for the manufactured home.